On 30 June 2015, the SFAT published its Reasons for Determination on the review of the SFC’s decision to sanction Pride over its failure to enter into mediation with a claimant under the Financial Dispute Resolution Scheme (“FDRS”) administered by the Financial Dispute Resolution Centre (“FDRC”).
The SFAT upheld the SFC’s decision but reduced the fine from HK$ 700,000 (approximately US$ 90,000) to HK$ 400,000 (approximately US$ 51,000).
The FDRC was set up in November 2011 to resolve monetary disputes between financial institutions and their customers to avoid the cost and delay of court litigation. Certain financial institutions are required to comply with the scheme. However, this is the first time the SFC has enforced the financial institutions’ obligations to comply with the FDRS.